What type of relationship does a firm in multiple representation without designated agency have with clients?

In a situation where a firm is engaged in multiple representation without designated agency, it has equal loyalty duties to both parties involved in the transaction. This means that the firm must treat both the buyer and the seller fairly and impartially, ensuring that the interests of each client are considered.

This equal duty of loyalty arises from the nature of the firm’s representation of both clients. The firm does not prioritize one party over the other, rather it strives to balance the needs and interests of both. This is particularly important in ensuring that both parties are adequately informed and can make decisions based on the same level of information, fostering transparency in the transaction.

While this context rules out the idea of a fiduciary duty solely to one party, or having no duty to either party, it establishes the necessity of maintaining a fair process for both clients. The firm’s obligation to provide equal service and support helps to uphold ethical standards in real estate transactions, enabling both the buyer and seller to have their interests acknowledged and managed appropriately.